For the average bond investor, getting into a game of predicting where interest rates will head over the near-term is likely a losing proposition. At the beginning of 2014 if you had followed the popular consensus and avoided bonds with the 10-Year … [Read more...]
Accrued Market Discount – What You Need to Know
In last week’s article, “10 Intermediate-Term Bonds Yielding Over 4%,” I presented 10 corporate bonds with yields-to-worst and current yields of at least 4%, maturities of less than 10 years, and credit ratings no lower than Ba3/BB-. Moreover, nine … [Read more...]
Yield to Call – What it is and how It Works
Yield to call measures what the yield on a bond will be if it is called at the earliest possible call date. Many bonds are callable, meaning they can be redeemed by the issuer prior to the bond’s maturity. Callable bonds are often issued to … [Read more...]
Do SandRidge Energy bonds yield 6% or 8%?
One my favorite bond analysts, Rom Badilla of Bondsquawk.com, recently recommended the high yield bonds of Sandridge Energy, a large producer of oil and natural gas. However, a person not very familiar with technical terms of the bond market might … [Read more...]
Don’t Be Scared to Purchase Individual Junk Bonds – Redux
By: The Financial Lexicon (October 1st, 2012) As an author of financial articles, I am accustomed to receiving all sorts of feedback on my writings. Occasionally, a reader may be confused about something I write, and I respond in an attempt to … [Read more...]
How to Choose a Municipal Bond for Income
Many investors prefer individual municipal bonds over municipal bond funds. What attracts them to individual municipal bonds is the income stability and lack of interest rate risk when individual bonds are bought and held to maturity. (You can … [Read more...]
The “Risk Tolerance” Mistake That Could Lead You To Financial Disaster
I read a number of great personal finance blogs including the Oblivious Investor written by Michael Piper. Recently, I found a guest post by him on the Bible Money Matters blog, called How To Determine Your Risk Tolerance. In the article, he … [Read more...]
Bond Trading – How to Trade Bonds Electronically
Bond trading is not like trading stocks. Bond trading technology and access has not developed as quickly as other markets. Electronic platforms with real time quotes which are the standard in other markets are the exception in the bond market. What … [Read more...]
How To Choose A Corporate Bond For Income
One of the main reasons to buy individual corporate bonds instead of bond funds is income. While both bond funds and individual corporate bonds deliver income, an individual bond will provide a fixed dollar payment on a regular basis, which does not … [Read more...]
Electronic Muni Bond Trading: Better than 2 Cans on a String
In order to research an upcoming piece on which broker has the best bond research, I opened small accounts at the 4 largest electronic brokers, each with $1000. Because the process is easier for personal accounts than it is for company accounts, I … [Read more...]